County commits Heritage funding

Subheadline:

Council agrees to $1 million loan to keep golf tournament afloat.

Beaufort County formally committed $1 million to the Heritage golf tournament in a resolution adopted Monday.

The County Council acted in anticipation of a phone call scheduled today between the PGA Tour and tournament organizers, including Heritage Foundation Board Chairman Simon Fraser and Tournament Director Steve Wilmot.

"There's no drop dead date; we've been going back and forth with the PGA," Fraser told the committee. "But hopefully we can tell them we have $4 million committed."

The tournament has $2 million in reserve and a commitment of $1 million from the town of Hilton Head Island.

Fraser called today's phone call "a critical conversation" with the PGA in terms of securing the traditional April date on the tour schedule.

Heritage organizers have been searching for a corporation to replace Verizon Communications, which announced in September 2009 it would no longer be the tournament's "title sponsor."

Fraser said talks continue with potential corporate title sponsors for the tournament.

"Under the PGA tournament model, we need to find one title sponsor. That's the way it works," Fraser said.

"If we get into late fall and we don't have one, we may end up with a title sponsor that doesn't pay the full amount," he said.

A title sponsor would put up $6 million to $7 million for the right to put its name on the tournament.

"But as long as we get $4 million, the county will be made whole," Fraser said. "We've never come to the town or county to ask for money, never needed it before, but we're in need at the moment."

The actual county allocation must be done by ordinance, which will require three readings and a public hearing. The first reading was passed Monday as well.

The county Finance Committee recommended Monday paying the Heritage allocation from the Hospitality Tax Fund.

"Any use of hospitality tax funds has to be done by ordinance," said County Attorney Ladson Howell. "Any way you do it it's going to take three readings and a public hearing."

The hospitality tax is collected on prepared food and beverages in restaurants.

The committee also recommended extending the tournament subsidy as a loan with conditions drafted by Chairman Stu Rodman.

Conditions include full repayment of the loan no later than 60 days after the Heritage Foundation secures a title sponsor.

The County Council adopted the resolution committing $1 million to the Heritage by a 7-1 vote.

First reading of an ordinance to allocate $1 million from the Hospitality Tax Fund as a loan to the Heritage passed by the same vote.

Supporting the tournamnent "is the neighborly thing to do," Flewelling said. "The Heritage has meant so much to the community. It's an important event and we need to do what we can to preserve it for many years to come," he said.

"I'm not sure if there's any tourism-related event in all of Beaufort County that contributes as much to the local economy as the Heritage," said Council Chairman Newton.

The Heritage has been played at the Sea Pines Golf Links annually since 1969, when it helped put Hilton Head Island on the map as a golf, vacation and retirement destination.

A recently released Clemson University study estimated the 2010 tournament's economic on the local economy at more than $89 million.